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Please help with these accy questions 1. Given the following information for the

ID: 2339401 • Letter: P

Question

Please help with these accy questions

1. Given the following information for the December 20X1 payroll payable on January 15, 20X2: ross salary Employee FICA tax Federal income tax withholding State income tax withholding Net pay Employer FICA tax Employer federal and state unemployment taxes 38 The amount to be debited to "Salaries Expense" for the December, 20X1, payroll is A. $675. B. $788. C. S1,113. D. $1,675. E. none of these 1000 75 170 80 $675 $75 2. ugross margin of $35,000 is 28% of net sales revenues, then net sales revenues must be A. $9,800. B. $25,200. C. $100,000 D. $125,000. E. none of these

Explanation / Answer

As per policy, we cannot able to post solution more than four sub parts of question.

Answer 1

Gross salary

1000

Components of salary expense for employer

Employee FICA tax

75

Deduction for employee

Federal income tax withholding

170

Deduction for employee

State income tax with holding

80

Deduction for employee

Net pay

675

Net cash received by employee from employer

Employer FICA tax

75

Components of salary expense for employer

Employer federal and state unemployment tax

38

Components of salary expense for employer

Gross salary

1000

Employer FICA tax

75

Employer federal and state unemployment tax

38

Salary expense

1113

Correct answer is C.

Answer 2

Gross margin in amount

35000

Gross margin in %

0.28

Net sales revenue (35000/0.28)

125000

Gross margin = 35000

28% of net sales revenue = 35000

Net sales revenue* 0.28 = 35000

Net sales revenue= 35000/0.28 =125000

Correct answer is D.

Answer 3

If a company's per unit cost of inventory purchase increased during the period, yet cost of goods sold as a % of sales revenue was lower than the prior year. Then for current year sales price per unit must have increased

Option B is correct

Because gross margin as a % of sales revenue must have increase due to decrease in cost of goods sold % as sales revenue.

If sales volume increase then also cost of goods sold increase due to increase in sales volume, it means it is incorrect.

If selling price increase which impact on decrease cost of goods sold as a% of sales revenue.

Answer 4

If company improve timely collection of account receivable reducing period of time receivable are outstanding, then receivable turnover has increased.

Correct answer is A

Collection period of account receivable and receivable turnover has inverse relationship. It means if collection period of account receivable decrease then increase in receivable turnover.

As per policy, we cannot able to post solution more than four sub parts of question.